Introduction Advent of ICT Increased integration of market Mobility of people for job and vacation Reach of satellite channels Internet Global Village

Globalization Most complex term Misused and misunderstood, misinterpreted Globalization is used to refer to increasing influence extended by economic, political, socio-cultural and financial processes across the globe. Numerous challenges and opportunities India and China were the world’s most dominant economic till the early nineteen century where as US, UK and Japan emerged as strong economies lately Import restriction after world war Import substitution strategies Multinational organizations set up after world war II

Globalization of Business In the beginning of Christian era, India was the most populated country with 75 million people constituting 32.5 percent of world population (230 million), China 25.8 percent India was the world’s largest economy with 32.9 percent share of the world’s GDP, China 26.1 percent India and China continued to remain the two most dominant economies till the early nineteenth century. India was a highly developed manufacturing country and exported her manufactured products to Europe and other nations.

The banking system in India was efficient and well organized – hundies Ship building industry in India Big market for Indian products in Europe Industrialization in Britain and new class of capitalist Monopoly of East India Company to export Indian products to Britain World War I period witnessed the growth of globalization, mainly led by technological forces in the field of transportation and communication The pace of globalization decreased between first and second world war because of trade barriers Most developing countries that gained independence from the colonial rule in the immediate post World War II followed import substitution policy to promote local industries

Establishment of multilateral organization like World Bank, IMF and GATT in the post war era Setting up to WTO in 1995 Enormous impact of information and communication technology on integration, efficiency and industrial organization in recent period

Concept of Globalization Free cross border movement of goods, services, capital, information and people Role of technological development www era Globalization tend to erode national boundaries and integrate national economies, cultures, technological interaction that leads to the establishment of transnational structure and integration of economic, political and social processes on a global scale

Globalization Economic Globalization Financial Globalization Cultural Globalization Political Globalization

Dimension of Economic Globalization Globalization of production Globalization of markets Globalization of competition Globalization of technology Globalization of corporations and industry

Factors Influencing Globalization Economic liberalization Technological breakthroughs (a) Manufacturing (b) Transportation (c) Information and communication Multilateral Institutions International economic integrations Rising research and development costs Global expansion of business operations Advent of logistics management Emergence of global customer segment

Regulatory controls Emerging trade barriers Cultural factors Nationalism Was and civil disturbances Management myopia

Concept of International Business Conducting business activities beyond national boundaries International trade International marketing International investments International management Global business

Reasons for International Business Expansion Market seeking motive : (a) marketing opportunities due to life cycle (b)uniqueness of product or service Economic motives: (a) profitability (b) achieving economies of scale (c) spreading R&D costs Strategic Motive: (a)Growth (b) Risk spread

Domestic v/s International Business Economic environment Socio-cultural environment Legal environment Political environment Competition Infrastructure Technology